Jimenez Company purchased a computer for $3,000 on January 1, 2013. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Jimenez record on December 31, 2013 to recognize expense related to use of the computer?

Question

Quizplus · Accepted Answer

Jimenez would recognize $500 of depreciation expense at the end of 2013. It would be computed as ($3,000 - $500)/5 years. The entry would be recorded as a debit to depreciation expense and a credit to accumulated depreciation.

Jimenez Company Purchased a Computer for $3,000 on January 1